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TMI Blog2021 (6) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... e cost of Liquidation process, and the affairs of the Debtor do not require further investigation may apply to NCLT for early dissolution of the Corporate Debtor - That the liquidator while preparing the Final progress report came to the conclusion that there being no assets realizable or saleable, it will only increase the cost of liquidation, can opt for Dissolution . Although this Section is in respect of Voluntary Liquidation of a Corporate Person, however, according to which where the affairs of the Corporate Person have been completely wound up, and its assets completely liquidated, the Liquidator shall make an Application to Adjudicating Authority for the Dissolution of such Corporate person - this is a fit case of a Corporate De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing such resolution plans in future and the Corporate Debtor was not into any business operations, and with no viable business opportunities. The COC members had already been reiterating that as the Corporate Debtor had no fixed assets and no employees on their payrolls, were incurring regular losses and in Debtor Company there was no Asset for Liquidation, therefore the members of the Committee of Creditors have approved for Liquidation .As a consequence, an Order under Section 33(2) was passed on04.12.2019 and the Debtor Company was allowed to be Liquidated under the provisions of The Insolvency and Bankruptcy Code, 2016. 4. The Learned Resolution Professional had taken necessary steps as prescribed under the Code and constituted C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re duly accepted by the Liquidator and communicated likewise to the respective stakeholders. 8. On 26.02.2020, the Learned Liquidator filed the Asset Memorandum and Preliminary Report, informing the assets of the Corporate Debtor comprised of only cash/ bank balances and listed securities aggregating 200,00,000 equity shares of FV ₹ 10 each in GTL Infrastructure Limited (Symbol: GTLINFRA and ISIN No INE221H01019), listed on BSE and NSE. 9. That the applicant states that the balance in the liquidation bank account of the Corporate Debtor was ₹ 60,15,930/- as of July 31st, 2020. The fund distribution was made in two tranches. Against the 1st interim tranch, an amount of ₹ 37,30,660/- was distributed on August 11th, 202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion Process)Regulations 2016, vide Regulation No.14, it is prescribed as under:- 14. Any time after the preparation of Preliminary Report,if it appears to the liquidator that (a) The realizable properties of the corporate debtor are insufficient to cover the cost of liquidation process; and (b) The affairs of the corporate debtor do not require any further investigation; he may apply to the Adjudicating Authority for early dissolution of the corporate debtor and for necessary directions in respect of such dissolution. 13. In the light of the above it is noticed that the Corporate Debtor does not have assets to be liquidated hence an Application is moved for the Dissolution of the Corporate Debtor . This Section is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r :- 54.(1) Where the assets of the corporate debtor have been completely liquidated, the liquidator shall make an application to the Adjudicating Authority for the dissolution of such corporate debtor. (2) The Adjudicating Authority shall on application filed by the liquidator under subsection (1) order that the corporate debtor shall be dissolved from the date of that order and the corporate debtor shall be dissolved accordingly. (3) A copy of an order under sub-section (2) shall within seven days from the date of such order, be forwarded to the authority with which the corporate debtor is registered. 17. In this connection it is also worth to refer Section 59, Sub- Section 7of IBC. Although this Section is in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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